29 July 2022, Baku: The Management Board of the Central Bank of the Republic of Azerbaijan left the refinancing rate unchanged at 7.75%, the floor of the interest rate corridor at 6.25% and the ceiling at 9.25%.

Since the last meeting dedicated to the monetary policy, factors have had upward and downward effect on actual and forecasted inflation. The stronger nominal effective exchange rate of the manat due to further depreciation of national currencies of certain partner countries and lower indicators characterizing the dynamics of global food prices and supply-logistic expenses in June had a downward effect on inflation.

However, wider aggregate demand may pave the way to transmission of the expenses rising over recent years to domestic inflation. Macro prudential decisions taken to effectively regulate lending activity are expected to push aggregate demand down.

The inflation forecast was nearly left unchanged on the backdrop of multidirectional effects of various factors. If the present dynamics persists, inflation is forecast to be lower than the current rate by the end-year.

Decision-related more detailed information will be provided at the press conference to be held at 11.00 with the participation of Mr Taleh Kazimov, Governor of the Central Bank.